Leases

12 Months Ended

Sep. 30, 2020

We have operating leases primarily for real estate, vehicles and equipment. Our leases have remaining lease terms from less than one year to approximately 17 years. We do not have a material amount of finance leases.

We elected the package of practical expedients permitted under the transition guidance within the new standard on accounting for leases, which allows the Company to carry forward the historical assessments of whether contracts are, or contain, leases, lease classification and initial direct costs. We also elected to not record lease ROU assets or lease liabilities for leases with an original

term of 12 months or less. We elected to use the remaining lease term for purposes of calculating the incremental borrowing rate upon transition.

The components of lease expense were as follows (in millions):



	2020
Operating lease expense⁽¹⁾	$	104.6
Variable lease expense⁽²⁾	15.6
Total lease expense	$	120.2

⁽¹⁾ Operating lease expense includes short-term lease expense which was not material.

⁽²⁾ Variable lease expense includes sublease income which was not material.

Rental expense accounted for under the previous accounting standard was $119.0 million in 2019 and $120.3 million in 2018.

Supplemental balance sheet information related to leases was as follows (in millions):



	2020
Weighted average remaining lease term	6.3 years
Weighted average discount rate	1.84	%

Maturities of lease liabilities as of September 30, 2020, were as follows (in millions):



2021	$	93.7
2022	78.4
2023	60.6
2024	43.0
2025	28.2
Thereafter	83.1
Total undiscounted lease payments	$	387.0
Less imputed interest	(22.6		)
Total operating lease liabilities	$	364.4

Undiscounted maturities of operating leases accounted for under the previous accounting standard as of September 30, 2019, were as follows (in millions):



2020	$	90.6
2021	72.6
2022	51.8
2023	36.7
2024	26.4
Thereafter	63.8
Total minimum lease payments	$	341.9

Supplemental cash flow information related to leases was as follows (in millions):



	2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	103.6
Operating right-of-use assets obtained in exchange for lease obligations	131.2